Selling, general and administrative (“SG&A”) expenses were down $1.1
million to $33.2 million

Net income increased to $0.4 million or $0.02 per share, up from a
loss of $15.6 million or $(1.01) per share in 2015

Won $54 million of new business (annual contract value) including 11
new clients and several expanded client engagements

Management Commentary

“In 2016, we increased gross profit by 50% on 9% revenue growth by
high-grading contracted revenue, which means we removed or improved less
than acceptable margin business, and improving operating efficiency,”
said Chad Carlson, CEO of STARTEK. “We also reduced overhead by $1.2
million, which ended the year at 10.8% of revenue. In the fourth quarter
alone, we were more profitable on even less revenue for the same
reasons. Our objective for 2016 was to grow our business and create a
positive bottom line, and our persistent focus on winning new business,
improving capacity utilization, tight cost management and upgrading
existing contracts enabled us to reach this goal for the first time
since 2009, while also generating more than $7 million of free cash flow
(a non-GAAP measure defined below).

“For the first time in 5 years, we believe we have all of the pieces in
place. The pipeline is stronger than at any time in the last 7 years. We
believe the core existing client base is solid and margins are
improving. We have added to the sales team and are intensifying the
focus to grow healthcare revenues and online retail revenues, in
addition to our existing vertical markets.

“During the fourth quarter, we won $11.1 million of annual contract
value from a growing sales pipeline to reach a total of $54 million in
new contracts for the full year 2016, with $43 million of that coming in
the second half of the year. We anticipate the recently reported new
client wins will be more apparent in the second quarter of 2017 and
continue through the rest of the year. This was accomplished with a
stronger sales team delivering a better message to the market with
regard to the STARTEK Advantage System.

“In 2017, we will continue to focus on growing revenue and upgrading
client contracts to deliver another year of top and bottom-line growth,
while also continuing to provide value for all of our clients.”

Full Year 2016 Financial Results

Total revenue in 2016 increased 9% to $307.2 million compared to $282.1
million in 2015. This includes ACCENT revenue of $28.0 million and $20.8
million of new business and growth from existing clients, partially
offset by $23.7 million of lost programs.

Gross profit increased 50% to $36.4 million from $24.3 million in 2015,
primarily due to the benefit of ongoing contract optimization efforts
and increased capacity utilization.

SG&A expenses in 2016 decreased to $33.2 million compared to $34.4
million in 2015. As a percentage of revenue, SG&A decreased 140 basis
points to 10.8% compared to 12.2% in 2015. The decrease was primarily
due to the full year impact of synergies realized from recent
acquisitions and continued expense management efforts.

Adjusted EBITDA (a non-GAAP measure defined below) in 2016 increased
267% to $17.0 million compared to $4.6 million in 2015. The increase was
primarily due to the aforementioned new client wins, upgrading contract
initiatives and improved operating efficiencies along with improved
capacity utilization.

Net income increased significantly to $0.4 million or $0.02 per diluted
share in 2016, compared to a net loss of $15.6 million or $(1.01) per
share in 2015.

Free cash flow in 2016 was $7.1 million compared to $(12.4) million in
2015.

Fourth Quarter 2016 Financial Results

Fourth quarter revenue was $77 million, approximately $5 million lower
than prior year due largely to lower volume caused by upgrading
contracted revenue of a few client programs, a bulge in 2015 demand from
a financial services client that did not reoccur and softer than
expected seasonal volumes coming from the retail and wireless sectors.
The decrease in revenue was partially offset by several new and expanded
client engagements.

Gross profit in the fourth quarter of 2016 increased 10% to $10.7
million compared to $9.7 million in the same period of 2015.

Gross margin in the fourth quarter of 2016 increased 200 basis points to
13.8% compared to 11.8% in the year-ago quarter, with the increase
attributable to upgrading client contracts, improved operating
efficiencies and enhanced capacity utilization.

SG&A expenses were $8.5 million in the fourth quarter of 2016 compared
to $8.4 million in the year-ago quarter.

Adjusted EBITDA in the fourth quarter increased 13% to $5.4 million
compared to $4.8 million in the year-ago quarter. The increase was due
to the aforementioned new client wins, upgrading contract initiatives
and improved operating efficiencies.

Net income increased 258% to $1.2 million or $0.07 per diluted share,
compared to $0.3 million or $0.02 per diluted share in the year-ago
quarter.

Free cash flow in the fourth quarter was $(3.4) million compared to
$(2.5) million in the year-ago period.

At December 31, 2016, the company’s cash position was $1.0 million
compared to $2.6 million at December 31, 2015, with the reduction due to
the repayment of debt over the course of the year. STARTEK closed the
quarter with a $26.0 million balance on its $50 million credit facility
compared to $32.2 million outstanding at December 31, 2015.

Conference Call and Webcast Details

STARTEK will hold a conference call today at 4:30 p.m. Eastern time to
discuss its fourth quarter and full year 2016 results. Management will
host the conference call, followed by a question and answer period.

Please call the conference telephone number 5-10 minutes prior to the
start time. An operator will register your name and organization. If you
have any difficulty connecting with the conference call, please contact
Liolios Group at 1-949-574-3860.

STARTEK strives to be the most trusted BPO service provider delivering
comprehensive contact center and customer engagement solutions. Our
employees, whom we call Brand Warriors, are enabled and empowered to
promote and protect our clients’ brands. For over 25 years, these Brand
Warriors have been committed to making a positive impact for our
clients’ business results, enhancing the customer experience while
reducing costs for our clients. With the latest technology in the BPO
industry and our STARTEK Advantage System, our Brand Warriors instill
customer loyalty through a variety of multi-channel customer
interactions, including voice, chat, email and IVR. Our service
offerings include sales support, order processing, customer care and
receivables management and customer analytics. For more information,
please visit www.STARTEK.com.

Forward-Looking Statements

The matters regarding the future discussed in this news release include
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
intended to be identified in this document by the words “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “may,” “objective,”
“outlook,” “plan,” “project,” “possible,” “potential,” “should” and
similar expressions. As described below, such statements are subject to
a number of risks and uncertainties that could cause STARTEK's actual
results to differ materially from those expressed or implied by any such
forward-looking statements. These factors include, but are not limited
to, risks relating to our reliance on a limited number of significant
customers, lack of minimum purchase requirements in our contracts, the
concentration of our business in the communications industry, lack of
wide geographic diversity, maximization of capacity utilization, foreign
currency exchange risk, risks inherent in the operation of business
outside of the United States, ability to hire and retain qualified
employees, increases in labor costs, management turnover and retention
of key personnel, trends affecting companies’ decisions to outsource
non-core services, reliance on technology and computer systems,
including investment in and development of new and enhanced technology,
increases in the cost of telephone and data services, unauthorized
disclosure of confidential client or client customer information or
personally identifiable information, compliance with regulations
governing protected health information, our ability to acquire and
integrate complementary businesses, compliance with our debt covenants,
ability of our largest stockholder to affect decisions and stock price
volatility. In addition, factors related to our acquisition of ACCENT
that may cause actual results to differ include our ability to integrate
the organizations to recognize expected financial benefits and synergies
and our ability to retain employees and customers of the acquired
business. Readers are encouraged to review Item 1A. - Risk Factors and
all other disclosures appearing in the Company's Form 10-K for the year
ended December 31, 2015 filed with the Securities and Exchange
Commission, for further information on risks and uncertainties that
could affect STARTEK's business, financial condition and results of
operation.

This press release contains references to the non-GAAP financial
measures of Adjusted EBITDA and Free cash flow. Reconciliation of
these non-GAAP measures to their comparable GAAP measures are
included below. This non-GAAP information should not be construed as
an alternative to the reported results determined in accordance with
GAAP. It is provided solely to assist in an investor’s understanding
of these items on the comparability of the Company’s operations.

The Company defines non-GAAP Adjusted EBITDA as net income (loss)
plus income tax expense (benefit), interest expense (income),
impairment losses and restructuring charges, depreciation and
amortization expense, (gains) losses on disposal of assets and
share-based compensation expense. Management uses Adjusted EBITDA as
a performance measure to analyze the performance of our business.
Management believes that excluding these non-cash and other
non-recurring items helps investors and analysts assess the strength
and performance of our ongoing operations.

Management believes that measures that exclude impairment losses and
restructuring charges or other non-recurring items permit a more
meaningful comparison and understanding of our operating performance
for the periods presented.

Adjusted EBITDA:

Three Months Ended

Twelve Months Ended

December 31,2016

December 31,2015

December 31,2016

December 31,2015

Net income (loss)

$

1,192

$

333

$

395

$

(15,616

)

Income tax (benefit) expense

384

(105

)

718

464

Interest expense, net

530

381

1,574

1,683

Impairment losses and restructuring charges, net

8

658

364

3,890

Depreciation and amortization expense

2,868

3,458

12,250

13,261

(Gains) losses on disposal of assets

16

—

(3

)

(509

)

Share-based compensation expense

443

93

1,722

1,469

Adjusted EBITDA

$

5,441

$

4,818

$

17,020

$

4,642

The Company defines non-GAAP free cash flow as Net cash provided by
(used in) operating activities reduced by capital expenditures. We use
free cash flow, and ratios based on it, to conduct and evaluate our
business because, although it is similar to cash flow from operations,
we believe it is a more conservative measure of cash flows since capital
expenditures are a necessary component of ongoing operations. Free cash
flow is used in addition to and in conjunction with results presented in
accordance with GAAP and it should not be relied upon to the exclusion
of GAAP financial measures. Free cash flow reflects an additional way of
viewing our liquidity that, when viewed with our GAAP results, provides
a more complete understanding of factors and trends affecting our cash
flows. Management strongly encourages shareholders to review our
financial statements and publicly-filed reports in their entirety and
not to rely on any single financial measure.